Under Minnesota law, which of the following is NOT a valid method or characteristic of mortgage foreclosure in Minnesota?
Correct Answer
A) A trustee's sale may be conducted when the mortgage contains a power-of-sale clause
A trustee's sale is NOT a valid foreclosure method in Minnesota. Trustee's sales are used in deed-of-trust states (such as California or Texas), where a third-party trustee holds legal title and can conduct a non-judicial sale upon default. Minnesota uses mortgages, not deeds of trust, so there is no trustee's sale mechanism. When a Minnesota mortgage contains a power-of-sale clause, the lender uses foreclosure by advertisement under Ch. 580 — not a trustee's sale.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
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